New Jersey Attorney Law Review Blog

  Effective April 1, 2014 , all limited liability companies (“LLCs”) formed in New Jersey will be governed by the Revised Uniform Limited Liability Company Act, N.J.S.A. 42:2C-1 through N.J.S.A. 42:2C-17 (the “Revised Act”). The Revised Act became effective as to newly formed LLCs on March 18, 2013. Starting on April 1, 2014, the Revised Act applies to all previously existing LLCs filed in New Jersey. The Revised LLC Act differs from the predecessor limited liability company Act in several substantial respects, of which current operating LLCs and those individuals deciding whether to incorporate a LLC in New Jersey should be aware, including the following:  An LLC will no longer have a limited duration, but instead will have perpetual duration under the Revised LLC Act.  The former LLC Act required a written Operating Agreement. Under the Revised LLC Act however, the Operating Agreement may be in writing, oral or even implied based on how the LLC operates. 

In this post I examine the attorney witness rule incorporated in New Jersey Rule of Professional Conduct (“RPC”) 3.7, and how the Rule can be used to disqualify a lawyer representing a party in litigation when the lawyer possesses factual knowledge of contested issues that go to the heart of the case.  Because courts generally are reluctant to disqualify a party’s choice of counsel, a motion brought pursuant to RPC 3.7 requires the moving party to bear the burden of proof by demonstrating that the attorney’s continued representation would violate the Rule. J.G. Ries & Sons, Inc. v. Spectraserv, Inc. ,384 N.J. Super. 216 (App. Div. 2006). RPC 3.7(a)  states: A lawyer shall not act as advocate at a trial in which the lawyer is likely to be a necessary witness except where: (1) the testimony relates to an uncontested issue; (2) the testimony relates to the nature and value of legal services rendered in the case; (3) disqualification of the lawyer wo